Atlanta Real Estate Market 2021

 

Atlanta Real Estate Market Trends & Statistics 2021

In this section, you will learn about the top factors that make Atlanta one of the strongest real estate markets of 2021, including: affordability, cash flow, and equity growth potential. Explore Atlanta’s housing market, population, and employment trends in the tabs to learn more.

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Data Sources:

• https://factfinder.census.gov/
• https://www.deptofnumbers.com/
• https://www.zillow.com/
• RealWealth Property Team Data

Atlanta real estate values are more affordable than many other U.S. cities today.

• In 2020, the median purchase price of an average home in the Atlanta area was $247,000. This is 3% lower than the national average of $254,000 for the average home nationwide.
• In the neighborhoods where RealWealth members invest, the median purchase price was only $200,000 in 2020. This is 21% more affordable than the national average.
• This shows us that real estate in Atlanta is more affordable than many cities across the nation. This is especially true in the neighborhoods where RealWealth members are investing today.

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In some Atlanta neighborhoods, it’s possible to generate stronger monthly income than the national average.

• In 2020, the median monthly rent for an average home in Atlanta was $1,573, which is 0.64% of the purchase price of $247,000. This is slightly below the national purchase-to-rent ratio of 0.68%.
• In the neighborhoods where RealWealth members invest, average homes rent for a median $1,450 per month, which is 0.73% of the purchase price of $200,000. This is 7% higher than the national average.
• This shows us that it’s possible to generate passive monthly cash flow from Atlanta properties, at a higher rent-to-purchase ratio than the national average.

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Atlanta home values have been appreciating at a faster rate than the national average.

• In 2014, the median price of the average home in Atlanta was $165,204. This means that, in the last 6 years (2014 to 2020), homes in Atlanta have appreciated by 50%. This is 36% faster growth compared to the national average.
• This shows us that Atlanta property values are appreciating at much a higher rate than most other U.S. cities today.

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The median monthly rent for Atlanta homes has risen slightly faster than the national average.

• In the last 6 years, the median rent for an average home increased by 35% in the Atlanta metro. Nationally, rents increased by 23% during this period.
• This shows us that Atlanta rental prices are appreciating 53% faster than other U.S. cities today. This is a good sign for real estate investors looking for appreciation.

Atlanta’s population has been growing rapidly over the last several years.

• Since 2010, Atlanta’s population increased by nearly 14%, which is 122% faster than the national average.
• This means that Atlanta is growing significantly faster than many other real estate markets, which is a promising sign for investors interested in equity growth and future income potential.

In a typical year, the Atlanta real estate market lost fewer jobs in than most U.S. cities.

• In the past year, Atlanta lost over 121,000 jobs to their economy – an annual loss rate of just over 4%. This 30% better than the U.S. annual job loss rate of 6%.
• Georgia’s economy is one of the top 10 states with the best recovery from the pandemic. Compared to January 2020, consumer spending is only down 1.6%. And new jobs are only 8.9% lower than they were at the beginning of the year.
• Population growth and job growth are two positive indicators of a strong real estate market. The reason is that jobs attract people and people will always need a place to live. This creates an increased demand for housing, which is a very good sign for landlords.

Atlanta is Very Affordable

• In the neighborhoods where RealWealth members invest, the median purchase price was only $200,000 in 2020. This is 21% more affordable than the national average.
• This shows us that real estate in Atlanta is more affordable than many cities across the nation. This is especially true in the neighborhoods where RealWealth members are investing today.

Atlanta is Cash Flowing

• In the neighborhoods where RealWealth members invest, average homes rent for a median $1,450 per month, which is 0.73% of the purchase price of $200,000. This is 7% higher than the national average.
• This shows us that it’s possible to generate passive monthly cash flow from Atlanta properties, at a higher rent-to-purchase ratio than the national average.

Atlanta is Appreciating

• In the last 6 years (2014 to 2020), average homes in Atlanta have appreciated by 50%. This is 36% faster growth compared to the national average.
• This shows us that Atlanta property values are appreciating at much a higher rate than most other U.S. cities today.

Atlanta is in Demand

• Since 2010, Atlanta’s population increased by over 12%, which is 111% faster than the national average.
• In the past year, Atlanta lost over 121,000 jobs – an annual loss rate of just over 4%. This 30% better than the U.S. annual job loss rate of 6%.
• Population growth and job growth are two positive indicators of a strong real estate market. The reason is that jobs attract people and people will always need a place to live. This creates an increased demand for housing, which is a very good sign for landlords.

Atlanta is Being Revitalized

• With more than $5 billion in private investments since the year 2000 and a proactive planning and community building team, Midtown, Atlanta stands out as one of the nation’s great neighborhoods.
• With a huge amount of new development underway that will accommodate more than 8,000 new jobs (see “Bonus” section below), we can expect Atlanta’s population to continue to grow in the coming years. And this is good news for real estate investors.

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[Bonus] Midtown Development

The Coronavirus pandemic hasn’t slowed down the  development and revitalization in the Midtown neighborhood of Atlanta. As we settle into 2021, it’s pretty likely that this growth isn’t slowing down anytime soon. Here are some notable projects in the works: Coda: A massive development at Technology Square is underway. The 22-story tower and complex features 645,000 square feet of offices, a 100,000-square-foot computing center, and 46,500 square feet of retail space. The development project was completed in 2019. Colony Square [Under Construction]:  One of Midtown Atlanta’s original high-rise developments is getting a major update to include an Apple Store, upscale shopping, high-end restaurants, and a second tower. NCR Corporate Headquarters Tower II [Under Construction]: The Fortune 500 company’s first tower is already complete and now work is finishing on tower II. When construction finishes both towers will offer more than 750,000 square feet of office space for the Tech Square area. Whole Foods: This Whole Foods will not be your typical grocery store. The three-story supermarket will include the groceries, along with a brewpub, restaurants, and a cooking school.

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Planning on visiting Atlanta before you invest? You should know it’s illegal to carry an ice cream cone in your back pocket on Sundays. But it’s totally cool to do it Monday through Saturday. Oh, and it’s also illegal to tie a giraffe to a lamp post.